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Photo = Homeplus |
[Alpha Biz= Kim Jisun] Seoul, South Korea — July 8, 2025 — Homeplus, one of South Korea’s largest hypermarket chains, is actively seeking a buyer ahead of its court-approved corporate rehabilitation plan, aiming to ease investor concerns over the perceived scale of acquisition funding.
“There are various estimates circulating in the market regarding the amount of capital required to acquire Homeplus,” the company said on July 8. “However, when factoring in the company’s financial structure and key restructuring terms, the actual cash outlay required is less than KRW 1 trillion (approx. USD 720 million).”
Citing a report by Samil PwC, the court-appointed examiner under the Seoul Bankruptcy Court, Homeplus stated its total enterprise value is estimated at around KRW 7 trillion. However, with majority shareholder MBK Partners having agreed to forgo any claims to its KRW 2.5 trillion common equity investment, the effective acquisition cost could be as low as the liquidation value of KRW 3.7 trillion.
The company also underscored the strength of its real estate portfolio, valued at approximately KRW 4.8 trillion. These assets could be used as collateral to raise up to KRW 2 trillion in financing, significantly reducing the buyer’s upfront cash requirement.
To help investors visualize the structure, Homeplus compared the deal to purchasing an “apartment with a long-term lease” (a common Korean jeonse arrangement). “Think of it as a KRW 7 trillion apartment with KRW 2.9 trillion already covered by a deposit. The new owner can borrow KRW 2 trillion against the property and only needs to invest less than KRW 1 trillion in actual cash,” the company explained.
The company’s persuasive messaging is part of a broader effort to attract potential strategic and financial investors prior to final court approval of its rehabilitation plan.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
